HMV saved from closure by £50m rescue deal with Hilco
Plan to save stricken music chain, backed by entertainment industry, could save 2,500 jobs
EMBATTLED music chain HMV has been bought by restructuring firm Hilco in a deal thought to be worth £50m, reports Sky News.
The firm acquired 141 stores and from the business, which collapsed in January, including 25 marked for closure by administrators Deloitte. The deal will safeguard around 2,500 jobs at the 92-year-old retailer.
The company has been considered a favourite to take over the beleaguered business after buying HMV's debt days after the high street music store went into administration in January.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Hilco, which is also expected to open a store in Dublin, had turned around HMV's Canadian business after buying it in 2011.
Record companies and film distributors have reportedly agreed new supply terms with HMV and are backing the deal. Labels want it to go ahead smoothly to provide a shop window for their products on the British high street and avoid being trapped into spiralling price cuts by the likes of Apple's iTunes and Amazon.
David Joseph, the chief executive of Universal UK, has previously said he was hoping for HMV to have a "6 Music moment" – similar to the time when artists and fans helped save the BBC radio station from the threat of closure in 2010.
HMV had been struggling for years before going into administration. The rise of digital downloading and success of online firms such as Amazon, as well as competition from supermarkets like Tesco, had destroyed its business model.
The company's rescue deal offers a glimmer of hope to the beleaguered retail sector and comes after two other brands which collapsed this year were also bought out.
Dragons' Den star and entrepreneur Peter Jones re-launched a down-sized Jessops camera chain last month and Sports Direct took over fashion chain Republic in March.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
5 simple items to help make your airplane seat more comfortable
The Week Recommends Gel cushions and inflatable travel pillows make a world of difference
By Catherine Garcia, The Week US Published
-
How safe are cruise ships in storms?
The Explainer The vessels are always prepared
By Devika Rao, The Week US Published
-
What message is Trump sending with his Cabinet picks?
TODAY'S BIG QUESTION By nominating high-profile loyalists like Matt Gaetz and RFK Jr., is Trump serious about creating a functioning Cabinet, or does he have a different plan in mind?
By Rafi Schwartz, The Week US Published
-
Britain's new retail returns nightmare
In The Spotlight Gen Z influencers and a 'poopy diaper' have shown up fault-lines in the system
By Chas Newkey-Burden, The Week UK Published
-
Apple in first union contract with retail employees
Speed Read The deal with employees at the Towson, Maryland, store marks the first labor agreement for any US Apple employees
By Justin Klawans, The Week US Published
-
Saks buys Neiman Marcus in $2.65B deal
Speed Read Following the merger of the two legacy retailers, the new entity will be called Saks Global
By Peter Weber, The Week US Published
-
Retail media is seeing a surge this year
The Explainer Amazon now makes more money from advertising than Coca-Cola's global revenue
By Justin Klawans, The Week US Published
-
Amazon vs. the FTC: behind the monumental antitrust showdown
Under the Radar The Federal Trade Commission is taking on the e-commerce giant for allegedly building a monopoly in the online market
By Theara Coleman, The Week US Published
-
Amazon, the 'everything store,' goes to court
Feature Does the retail and tech giant actually have a monopoly or is that argument a bit of a stretch?
By The Week Staff Published
-
Why the FTC antitrust lawsuit against Amazon is so consequential
Talking Point While it's not the first case the federal agency brought against the company, it might be the biggest challenge yet
By Theara Coleman Published
-
Amazon slashes its way to higher profits
feature The tech giant has had a tough few years. But are things on the up and up?
By The Week Staff Published